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COM 361-Final Exam Review

COM 361-Final Exam Review - COM 361 International Business...

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COM 361 – International Business Final Exam Review Terms Integrated Non-Market Strategy A firm’s plan of how to integrate market and non-market strategies develop overall strategic direction of the firm Nonmarket environment Social, political, and legal arrangements that structure interactions outside of, but not in conjunction with markets and private agreements Interactions between the firm and stakeholders outside of economic markets, governed by public and private institutions Social Accountability From accountability to shareholders core constituencies other parties affected From accountability for financial results legal rights legitimate claims Public perception DAD: Decide – Announce – Defend DDD: Dialogue – Decide – Deliver Why are firms responding to social and environmental issues? -societal expectations -because they actually care -brand image Degree of globalization Degree of Global Integration High Global Standardization Transnational Low International Localization (Multidomestic) Low High Degree of Local Adaptation -depends on the benefits of global integration vs. the benefits of national differentiation -key issues: How important are global scale economies? How different are customer requirements between countries? Global Standardization (Global) Ex: Toys R Us, Boeing -centralized decision-making -R&D, design, manufacturing, and sales all done in a different country -distribution and service all done in individual countries -deliver a standard product -worldwide product division structure -global organization mentality Transnational
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-R&D, design and manufacturing all done in different countries -sales and distribution specific to each country -deliver differentiated products to different countries -Global Matrix Structure Benefits: division of labour, specialization Drawbacks: conflicts -informal organization initiatives to help create global-local balance – culture, cross-country teams and projects, frequent travelling and interactions International Ex: McDonald’s -R&D, design and manufacturing all done in home country -sales and distribution and service in multiple countries -final product is uniform and global -international division -can lead to conflict between international and domestic divisions Localization (Multidomestic) Ex: Proctor & Gamble -decentralized decisions -company divided into regions -R&D in home country -design, manufacturing, sales and distribution and service done in individual countries -final products differ by country -worldwide area division structure -multinational mentality Business Model -creates value for all parties involved (firm, suppliers, partners, customers, etc.) -3 parts: 1. Content: goods and services exchanged, and capabilities required to enable the exchange 2. Structure: parties involved in the exchange and how they are linked 3. Governance: defines who performs which activities -examples: Priceline.com: reverse auction American Express Travelers Cheques
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COM 361-Final Exam Review - COM 361 International Business...

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